Invest in technology - but please don't invest in the wrong one!

The most common mistakes in the development of digital business models

We are in the golden era of technological innovation, which makes it easy to invest in breathtaking new technology that unfortunately does not fit with a company's vision or actual strategy, perhaps not even with the principles of digital transformation. Therefore, this alignment should be ensured beforehand. Organizations should even distance themselves from large, ready-made solutions and look for small-format, cloud-based systems with which they can react more flexibly to market needs and economic changes. This principle also applies to the development of proprietary platforms.

Focus also on "transformation" and not only on "digital"

Technology is certainly the component that enables digital transformation, but the successful implementation of this requires people. They are the most valuable asset of an organization and are able to perform successfully with the help of the tool "technology". Employees must be offered opportunities to develop their skills and learn throughout their lives so that they can also benefit from digital transformation. In addition, any implementation must also be accompanied by strong change management, which brings us to the next point.

Rigid structures

Break away from the idea that new digital business models can be integrated into existing structures. Many digital transformation initiatives are not scalable due to a lack of strategic architecture in companies or fail to support customer experiences through internal processes. The entire chain of actions and instances that help shape the customer experience must be considered and adapted from a transformation perspective. The best digital channel in the world, will lead nowhere if it does not improve the customer experience. Transparency is needed in all processes and platforms.

No transformation without culture

A lack of transformation vision, lack of leadership and a culture that includes fear of novelty - all not good prerequisites for successful digital transformation - yet still found in most organizations, especially in highly regulated industries.  First of all, a clear digital vision is needed, as well as strong leaders who support digital transformation, because such a transformation should be top-down and not bottom-up. In the next step, all employees should be encouraged to live the process of transformation - to think differently, to innovate and to make change happen.

Waterfall was yesterday - agility is today!

Today's organizations face increasingly challenging market conditions and therefore need to be more agile to adapt to new technologies and respond quickly and flexibly to changing needs. Scrum is a proven form of agile project management here. The problem is that the waterfall principle as well as the separation of IT and business still prevail in many companies. In order to benefit from a comprehensive digital transformation, companies must say goodbye to functional specifications, long development times, fixed deadlines and specifications for external service providers and become lean. There is little point in having a market-leading technology if it still takes months to release a new product.

Read more about Scrum Process

No risk - no Scrum

The way risks are handled must also change, since agile procedures cannot be implemented in a risk-averse environment. Neither project results nor project paths can be defined in advance, just as critical areas cannot be described at the very beginning. Of course, this fact implies that risks are not only accepted, but also consciously calculated in - which is why, on the one hand, you should not set deadlines that are too tight - because it often takes longer than you think - and, on the other hand, you should consequently plan for more budget.

The customer is king - since time immemorial!

This is well-known wisdom, and despite everything, many still fail to follow it today. Primarily, the end consumer must benefit from Digital Transformation if the company wants to maintain its customer base and market value. If companies only pursue the improvement of internal processes and the associated cost savings as part of their digital transformation, they neglect customer development and experience, which as a consequence leads to the loss of the customer. However, the other way around, this concept can be extremely promising: The company has inefficient processes, but delivers a unique user experience! This, by the way, is often hidden behind simple, rather than complicated solutions. They will only achieve the optimal solution by means of customer feedback in the early stages of development. Only the customer knows what he misses or what he has problems with.

Read more about customer-based solution development.

You can never have enough data

If you want to rediscover your customers and offer them new experiences through digital transformation, you also have to get to know them digitally. On this point, many companies actually show too much consideration for their customers, who are cautious about disclosing data even in today's digital age because they fear they could lose privacy as a result. However, quality, controlled and well-managed data is the foundation for a digital future. So on the one hand, customers should be made to understand that primarily they should benefit from the release of their data in the future, and on the other hand, companies should work on the quality and integration of the data that is available to them, instead of focusing solely on the implementation of the new digital system.

Sharing is Caring

But it's not just customers who keep their data to themselves - companies like to do the same. However, those who want to master the digital transformation of business models will often have to enter into partnerships or joint ventures. Withholding helpful data out of mistrust will definitely not bring the desired success

Imperfect Perfection

No development of digital solutions without trial and error. This is another culture shock for traditional companies. Until now, they have been able to see in the dark and therefore only deliver perfect solutions. Errors remained under lock and key. In the new digital age, testing and improvement take place directly on the customer - visible to everyone. This is the only way to eliminate errors early on and save costs. You should therefore also take this approach into account when developing your enterprise platform.

Success with your digital business models - we will be happy to advise you

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